Business Valuations Asset Approach
Hey there Dan Branch back with another episode of behind the numbers. Today I’m going to go in a little more detail about the Business Valuations Asset Approach which is one of the three main approaches in valuing a business.
The Business Valuations Asset Approach is when you look at the assets of the business the underlying assets that are used in the business and trying to figure out what the value of those assets is today or at whatever specific time period that you’re looking to do the business valuation.
Certainly for some companies like a service provider or a service company one that really provides a service more than a manufacturing or very capital asset intensive business it may be more difficult to use an asset approach to value a service type company.
So certainly there are specific information facts and circumstances of each case and really each business that you’re looking at to determine if an asset approach is appropriate but usually it is one of the approaches that is considered and looked at in the court of law.
Again this is Dan Branch with IAG Forensics & Valuation. I look forward to seeing you on future Behind The Numbers episodes.
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